Contents

22

44

66

11

55

Background

Challenges

What has been achieved

What’s next

Questions

33 What are we doing

BackgroundThe Compensation Fund is faced with massive untenable challenges and cannot maintain the status quo.

Issue Expected Outcomes

The Turn-around plan will ensure that all key business elements are addressed leading to a transformed Compensation Fund and ultimately improve service delivery.

ChallengesThe CF has undertaken a diagnostic review of its operations and identified key business challenges, requiring immediate focus to ensure successful strategic execution enablement

Current Situation: Strategic Priorities Business Challenges

• Too many initiatives leading to overloading parts of the organisation

• Inadequate business coordination and integration

• Poor project and schedule integration

• Poor issues and risks management due to insufficient oversight

• Poorly aligned definition and achievement of “systems optimisation”

• Misalignment with regards to performance management and accountability

• Low people engagement throughout the agency

• Turn-around fatigue

• Inadequate capacity in critical Financial management areas

• Negative Audit outcomes

Claims Processing and Payments

Revenue Collection

Operational Efficiency

• Improved payment of benefits to the beneficiaries of the Fund

• Effective administration of the Fund’s operations

• Improved revenue collection from employers

Rehabilitation and Integration

• Promote rehabilitation, re-integration and return to work of injured and diseased workers

ChallengesAuditor General

Findings

2008/09

Year

2009/10

2010/11

2011/12

DISCLAIMER

QUALIFICATION

QUALIFICATION

Financial Management

Quality of DataPeople

Process

Systems

Skills & Competence

Leadership

2012/13 DISCLAIMER

Auditor General’s Findings

•No effective and efficient revenue management function exists as required by

PFMA;

•The Fund did not take effective and appropriate steps to timeously collect all

money due to the Fund;

•Unable to determine completeness and accuracy of revenue assessment;

•Not all employers correctly assessed and billed;

•Unreliable information (missing banking details, lack of controls);

•Penalties and Interest not calculated correctly;

•Long outstanding debts not collected; and

•Current and uncorrected misstatement in the Financials

QUALIFICATION

What are we doingOur approach is aimed at achieving the key CF value drivers and desired outcomes

Singing from the same hymn sheet• CF Executive Management members display a

common understanding of the intent of the Strategy and Operating Model.

• Executive Management Alignment;• Review and confirm appropriate governance; and • Agree and communicate individual accountability through Programme

Management

Projects aligned to Strategic Intent• Projects that are more focused and aligned to

strategic intent and Operating Model.

• Plan, prioritise and schedule initiatives and resources to align with the CF Strategic Intent; and

• Ensure non strategic or non-value delivering projects are scrapped

What we want to achieve? What are we doing?

Improved Financial Management• Improve Revenue Collection• Ensure proper financial management controls• Clean Audits

• Develop clear revenue management strategy;• Develop financial management policies, procedures and standards;• ROE website;• Ensure staff are trained and skilled in the required areas; and• Address Auditor General’s findings including payroll audits

Improved Claims and Beneficiary Management• Reduce Claims processing and payment backlog• Improve turn-around times• Reduce fraud and corruption

• Finalise the backlog program;• Review and update business processes;• Implement the new RMA system;• Integration between claims management systems and financial

system;• Improve system controls .

Formal journey management• Drive the Operating Model implementation;• Ensure integrated and co-ordinated project; and

portfolio management, reporting and reviews.

• Develop detailed implementation plan and drive rigorous; execution of change management; and

• Promote immediate feedback and acceptance;

Governance StructureA formalized governance and program structure has been developed and approved to successfully drive the Transformation programmes.

Key Notes:•The Programme Management Forum considers progress on key projects and also takes decisions on Programme related matters;

Rational for new structures?

• Improve decision making in the Fund;

• Ensure harmonization and alignment of programmes and coordinated planning and implementation;

• Promote shared understanding of compensation fund issues, challenges and priorities;

• Ensure good governance and accountability through collective leadership and management of programmes;

• A platform to share information, communicate decisions, share best practices and experiences as well as to review performance;

• Promote collegiality and cooperation within the management echelon and among staff.

Initiatives PlannedThe following Key Initiatives have been identified to unlock value and drive the improvements required.

Phase 1 Phase 2 Phase 3

Mar’15

Governance and Leadership alignment;

Fraud and Corruption Hotline; Business Continuity Review

Performance Management, Change Management, and Communication

Performance management system; Customer Relationship management

strategy; Policies, procedures and standards

ICT Refresh; Implement Channel innovation

and CRM system

Action plan against AG audits and Scopa recommendations;

Revenue Management Strategy;

Letter of Good Standing

Decentralisation; ROE Website; Claims backlog program; RMA system pilot; Unclaimed beneficiary monies program; Data cleansing on eClaims

Payroll audits; Implement data cleansing

project; Policies, procedures and

standards

Policies, procedures and standards;

Online claims submission portal

Full implementation of RMA system;

RMA system integration to financial system;

Rehabilitation Programme

Implement Ecommerce system with auto assessment;

Integrate Ecommerce system to financial system

Programme

Operations

Corporate Services

Financial Management

(including ICT)

CorporateManagement

Establish PMO; Fill critical vacancies; Implement new Org structure; Client Survey Recommendations; Business process re-engineering

Virtual Office and Smart forms; ICT Strategy review ICT Operating model

Mar’14 Mar’16

Legislation Amendment; Delegation of Authority framework Enterprise Document and Records

Management

Progress Dashboard

• Turn-around plan has been developed and currently being finalised with management and Exco;

• Governance structures completed and signed off;

• Commissioner is Project Sponsor, with CFO is Project Director;

• Programme Managers and Responsibility Managers appointed to promote accountability in terms of PFMA;

• Audit of all initiatives and progress is currently underway;

• Process to establish well capacitated PMO underway;

• Finance policies and procedures are being established in line with PFMA and AG recommendations;

• Adverts and shortlisting of new Director posts underway;

• Action plan against AG audits has been completed and approved by Exco;

• ROE website has been completed, is operational and enhancements underway;

• New improved Letter of Good standing in pilot phase to be rolled out in November 2013;

• Claims backlog program is on-going

• Turn-around plan has been developed and currently being finalised with management and Exco;

• Governance structures completed and signed off;

• Commissioner is Project Sponsor, with CFO is Project Director;

• Programme Managers and Responsibility Managers appointed to promote accountability in terms of PFMA;

• Audit of all initiatives and progress is currently underway;

• Process to establish well capacitated PMO underway;

• Finance policies and procedures are being established in line with PFMA and AG recommendations;

• Adverts and shortlisting of new Director posts underway;

• Action plan against AG audits has been completed and approved by Exco;

• ROE website has been completed, is operational and enhancements underway;

• New improved Letter of Good standing in pilot phase to be rolled out in November 2013;

• Claims backlog program is on-going

Key Points

Completed

In-progress

Behind Schedule – Management intervention required

Not Started

Corporate ManagementGovernance framework Leadership alignment Fraud Hotline Business Continuity Review Corporate ServicesEstablish PMO Fill critical vacancies in line with new Org structure

Implement new Org Structure Climate Survey Recommendations Business Process Re-engineering Financial ManagementAction plan against AG audits and Scopa Revenue Management Strategy Letter of Good Standing OperationsDecentralisation ROE Website Claims backlog program RMA System Pilot Unclaimed beneficiary monies program

Data Cleansing and Update of banking details

Next Steps

- Enhancement of Turn-around plan and

follow on approval by Board and

Executive Authority;

- Communication and socialisation of

Turn-around plan;

- Outputs linked to manager’s KPIs;

- Effectively manage risk and

consequences;

- Work the Plan

Questions